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Commercial Real Estate > Base Rent
The following information is about Base Rent.
Base Rent Defined
Is the rate at commencement of the lease. It is subject to annual increases unless otherwise negotiated in the lease or Addendum or an attached ammendment. This phrase has more than one meaning. To some landlords, and in some markets it refers to the rental rate minus operating expenses., i.e. $14 per square foot quoted rate, the building operates at $6.50 (operating expense cost); therefore, the base rate(net rent) is $7.50.
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